CNENGLISH

The Company has established and perfected the corporate governance structure and modern enterprise system by strictly following the Company Law, Securities Law and requirements in relevant laws and regulations of China Securities Regulatory Commission (CSRC), and also formulated a series of systems such as Rules of Procedure for the General Meeting of Shareholders, Rules of Procedure for the Board of Directors, Rules of Procedure for the Board of Supervisors, Detailed Working Instructions for President etc. by following the requirements in such regulating documents as Code of Corporate Governance for Listed Companies in China issued by CSRC and the State Economic and Trade Commission; as well as established a much sounder corporate governance structure and governance mechanism which is of mutual restraint, mutual and balance among the General Meeting of Shareholders, Board of Directors, Board of Supervisors and the management so as to standardize the operation of the Company.

In 2008, the Company carried out an important inspection on the corporate governance by strictly in accordance with the “Notice on Important Inspection on the Normative Operation of Corporate Governance” issued by Tianjin Securities Regulatory Commission and combining with the actual situations of the Company. By taking this opportunity, the Company continued to improve the corporate governance and prepared and submitted the reference document about the important inspection on the normative operation of the Company to Tianjin Securities Regulatory Commission. In 2008, the Company ranked 14 among all the companies and was awarded the honor of “2008 Top 100 Listed Company with Excellent Market Value Management in China” by CCMVM, and the first prize of “2008 Top 100 Blue-chip Company in China” by Chinese Organizing Committee of the Annual Meeting of Blue-Chip Companies.

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